Reliance Industries has said it will invest USD 3.2 billion in bringing to production the satellite D34 gas discovery to reverse the decline in output at the Bay of Bengal KG-D6 block.

RIL said the D34 discovery, which holds 1.2-1.4 trillion cubic feet of gas reserves, will start producing in four years with peak output of 12 million standard cubic meters per day.

The reserves in D34 discovery are one-third of the revised inplace volumes at the main Dhirubhai-1 and 3 (D1 & D3) gas fields in KG-D6 block. The envisaged peak output is more than D1&D3's current production of 10 mmscmd.

In an investor presentation after declaring financial results for July-September quarter, RIL said the D34 find was made in 2007 and a field development plan was submitted to authorities in January this year.

The investment plan was "approved by Management Committee (MC) of KG-D6 block in August 2013," it said.

RIL and its partner BP plc of UK plan to quickly bring satellite fields in the KG-D6 block to production to help reverse the decline in output.

The duo are investing USD 1.529 billion in four other satellite fields that can produce 10 mmscmd.

D34 and the four satellite are expected to begin producing around the same time in 2017-18.

RIL said it will drill 8 development wells on D34 and lay a pipeline to take the gas to the existing facilities of D1-D3 fields from where it will be transported onshore.